Ford Motor Company is making bold moves to strengthen its electric vehicle (EV) portfolio and offer customers more propulsion choices that reduce CO2 emissions. By revising its North American vehicle roadmap, Ford plans to accelerate EV adoption with lower prices and extended ranges. A digitally advanced commercial van in 2026, followed by two innovative electric pickup trucks in 2027, highlights this strategy. Alongside these product advancements, Ford is realigning its U.S. battery sourcing to minimize costs and maximize capacity, ensuring a sustainable and profitable future in EV production.
Ford’s approach emphasizes customer preferences and lessons learned from its current standing as the No. 2 EV brand in the U.S. CEO Jim Farley underscores the importance of delivering innovative hybrid and electric vehicles that meet diverse needs while driving CO2 reduction. The company’s plans hinge on cost-efficient design and offering maximum choice. As the EV market becomes more competitive, with international rivals like China leveraging advanced cost structures and technology, Ford seeks to maintain its leadership by targeting specific customer and product segments with precision.
Today’s EV consumers are highly cost-conscious, valuing the practicality of electric vehicles for savings on fuel and maintenance. However, an influx of new EV models, stricter compliance requirements, and heightened pricing pressures necessitate a globally competitive cost structure. John Lawler, Ford’s CFO, highlights the company’s focus on profitability, announcing adjustments to product launches and technology roadmaps to align with these market realities. By balancing innovation with cost efficiency, Ford aims to achieve positive earnings before interest and taxes (EBIT) for all new models within their first year.
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Electrification Across Vehicle Categories
To meet diverse consumer demands, Ford is leveraging hybrid technology in its upcoming three-row SUVs, moving away from a fully electric plan for this segment. This strategic pivot will result in non-cash charges and other expenses but positions Ford to capitalize on the growing popularity of hybrids. By reducing its annual capital expenditure dedicated to pure EVs from 40% to 30%, Ford signals a more balanced approach to electrification. This includes leveraging U.S. battery production to qualify for tax credits and supporting a robust lineup of electric and hybrid vehicles.
Commercial electric vehicles (CEVs) are a cornerstone of Ford’s EV strategy, led by the success of the E-Transit, America’s best-selling electric van. A new electric commercial van will launch in 2026, assembled at Ford’s Ohio Assembly Plant. This vehicle aims to meet the productivity and cost-of-ownership needs of businesses, enhancing Ford’s leadership in the CEV market. Ford Pro solutions, including software and charging options, further cement its commitment to delivering tools that empower commercial customers.
Ford is transforming its vehicle development process through a dedicated team in California focused on reducing EV costs and complexity. This “skunkworks” team integrates design, engineering, and supply chain management to create a low-cost, high-efficiency EV platform. The first vehicle from this platform, a mid-sized electric pickup, will debut in 2027, catering to customers seeking affordability, utility, and range. This platform will underpin various vehicle styles, retail, and commercial, offering scalable and personalized digital experiences.
Next-Generation Electric Trucks and Broader Electrification
Ford is retiming the launch of its next-generation electric truck, “Project T3,” to late 2027. This truck, developed from insights gathered from F-150 Lightning customers, will feature advanced aerodynamics and upgraded charging capabilities. In parallel, Ford is introducing electrified three-row SUVs and hybrid F-Series Super Duty pickups, ensuring that both personal and commercial users have options tailored to their needs. By integrating hybrid and electric propulsion, Ford future-proofs its iconic truck lineup while addressing the challenges of battery costs for larger vehicles.
Battery sourcing remains critical to Ford’s electrification strategy. The company is relocating Mustang Mach-E battery production to Michigan in 2025 to qualify for tax benefits, while BlueOval SK plants in Kentucky and Tennessee will produce advanced battery cells for upcoming models. Lithium iron phosphate (LFP) battery production will commence in 2026 at BlueOval Battery Park Michigan, further lowering costs. This strategy ensures flexibility and cost competitiveness across Ford’s electrified vehicle lineup, enabling the company to adapt as market demands evolve.
In 2025, Ford will provide further updates on its electrification strategy, profitability goals, and capital requirements, reflecting its unwavering commitment to shaping a sustainable and customer-focused EV future.
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